CME tells federal government carbon pricing cannot compromise Canada’s competitiveness

July 27, 2017

Canadian Manufacturers & Exporters (CME) submitted a letter to the Government of Canada’s as part of the Federal Carbon Pricing Backstop consultations stating that carbon pricing policies cannot compromise economic growth, industrial investment, or the global competitiveness of Canadian industry. CME asked the government for an approach that strikes the right balance between environmental improvements and the economic performance of the Canadian manufacturing sector.

“The economy and the environment are not opposing forces. Through innovation, technological breakthroughs and smart planning we can strengthen the health of our environment and our economy, said Dennis Darby, President and CEO of CME. “The evidence of the past 25 years clearly shows that improvements in environmental performance and economic growth go hand-in-hand.”

“As investment in new machinery and equipment increases, companies are more productive, and emissions and energy intensity decrease,” specified Darby. “At the same time, these investments make manufacturers more competitive, enabling companies to invest further in their workforce, and in new products and technologies, as they expand their business.” In order to achieve this balance, CME recommended that governments take a balanced approach through the following measures:

  1. All government revenues collected from industry through a carbon pricing system must be returned to industry to support investment in technologies that reduce GHG emissions;
  2. The overall tax burden must be equivalent, or lower, after any potential carbon tax introduction through the reduction of other business taxes, including payroll and corporate taxes;
  3. Carbon pricing programs and regulations must be simple and streamlined with no duplication with other regulatory initiatives (federal or provincial);
  4. We must ensure those companies that are trade exposed have tools to compete in both domestic and foreign markets where carbon pricing is not be applied to foreign producers; and
  5. We believe that by focusing on desired outcomes and providing industry and consumers’ flexibility in meeting those goals, we can achieve them.

“Canadian manufacturers need a competitive business climate to continue to create jobs and prosperity in our communities,” stated Darby. “This includes consideration of the effective corporate tax rate, energy costs, and the general costs of regulatory compliance.”


Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.


Stefi Proulx

Director of Communications & Branding

Canadian Manufacturers & Exporters

(613) 292-6070